Gold has been cruising near its record highs up to now few days but appears to be struggling to bust out of consolidation.

Try these inflection points I’m watching!

Gold (XAU/USD) 1-hour Forex Chart by TradingView

All this talk concerning the size of the Fed’s potential September rate cut appears to be keeping this precious metal on edge!

Market players are keeping extra close tabs on U.S. data points nowadays, attempting to gauge if the FOMC is about to announce a normal 0.25% reduction in borrowing costs or a bigger 0.50% cut later this month.

With that, shifting expectations have kept this anti-USD asset bouncing backwards and forwards between support around $2,475 and resistance at $2,525 near R1 ($2,527.37).

Can the upcoming U.S. CPI release keep gold prices on this range?

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. For those who haven’t yet done your homework on the U.S. dollar and gold, then it’s time to examine out the economic calendar and stay updated on day by day fundamental news!

XAU/USD has been edging higher thus far this week, climbing inside striking distance of the range resistance once more.

Keep a watch out for reversal candlesticks around this area that would attract gold bears and send the dear metal back right down to the realm of interest around $2,500 and the pivot point level or all the best way right down to the underside of the range.

Just the identical, keep your eyes peeled for long green candlesticks suggesting a upside break of the range resistance since these could persuade gold bulls to charge to fresh record highs.

Don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!